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Review: Chase Freedom vs Freedom Unlimited

Editorial Note: This content is not provided by the card issuer. Opinions expressed here are author's alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer.This article contains references to products from our partners. We receive compensation if you apply or shop through links in our content. You help support CreditDonkey by reading our website and using our links. (read more)

Does Chase Freedom or Freedom Unlimited make more sense? Read this in-depth comparison of these cashback cards to learn which is better. The answer may surprise you.

Both have no annual fee, a generous sign-up bonus, and tempting cash reward structures. The main difference is that Chase Freedom gives you 5% cash back in rotating bonus categories, while the Chase Freedom Unlimited is a flat 1.5% cash back on everything.

Which one is better for you? We'll do a full run-down comparing the two cards so you can make your own choice.

Overview

Before we get into the meat of the comparisons, let's do a quick rundown of how the cards work:

Benefits and Features

Introductory Bonus Cash Back: Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.

Cash Back

Cash Back Rewards: Unlimited 1% cash back on all other purchases.

Cash Back Rewards: Unlimited 1.5% cash back on every purchase - it's automatic!

Bonus Cash Back

Bonus Cash Back: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter. Unlimited 1% cash back on all other purchases.Bonus Categories for 2018:
January - March 2018: Gas stations, internet/cable/phone services and Chase Pay, Apple Pay, Android Pay, Samsung Pay
April - June 2018: PayPal, Chase Pay and Grocery stores

Chase Freedom: Pricing information including interest rates, benefits and fees was obtained on January 12, 2018 from published websites and is believed to be accurate, but not guaranteed.

Disclaimer: The information for the Chase Freedom has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.

Chase Freedom gives you 5% cash back in quarterly rotating categories on up to $1,500 in combined purchases every quarter. All other purchases earn 1% cash back.

In this review, we will take a more in-depth look at the similarities and differences, as well as why you may like one over the other.

Why Either Card Is Good Choice

$150 bonus: Both cards offer a $150 bonus after you spend just $500 on purchases in your first 3 months from account opening. This is a generous bonus for cards with no annual fee.

$25 bonus for adding an authorized user: Both cards give you the opportunity to earn an extra $25 when you add your first authorized user and they make a purchase within the same first 3-month period.

0% introductory APR for 15 months: Both cards offer 0% introductory APR for purchases and balance transfers for the first 15 months. After that, there is a variable APR of 16.24% - 24.99%. Note: the balance transfer fee is 5% of the amount transferred, $5 minimum.

The promotional APR is a great way to get a break on high interest rates if you are planning to make some larger purchases or have debt to pay off. Just be sure to pay off any balances before the intro period ends.

Why you may prefer Chase Freedom

This is a popular card for good reason. Here is why you may like the Chase Freedom:

5% cash back bonus categories. This is the main draw of Chase Freedom. 5% bonus categories are a huge deal. It's hard to find cards that offer more than this, especially with no annual fee.

This is how it works: Every quarter (every 3 months), there are bonus categories that will earn 5% cash back, while all other purchases earn 1%. You can get 5% cash back on up to $1,500 in combined purchases in the bonus categories, which equals up to $75 bonus cash back every quarter. After that, you go back to the 1% cash back rate.

Calendar: The bonus categories are usually popular spending categories. For example, in 2017, they had:

Categories and merchants are announced before the start of each quarter.

You don't mind changing up your spending to match the bonus categories. You can get a lot more rewards with the 5% bonus categories, but you would need to manage your spending. For example, maybe you'll eat out more often from July to September, and cook more at home the rest of the year.

You're organized. You must remember to activate the bonus categories each quarter. Or else you won't get the 5% bonus. You can do so online, by phone, or at a Chase bank.

For a lot of people, the 5% bonus potential is just too tempting. But for others, it's too much work. If this sounds like you, read on.

Why you may prefer Chase Freedom Unlimited

If your spending is very varied, you may find that you'll get more rewards with Chase Freedom Unlimited. Here are some reasons why it may be better for you:

Flat 1.5% cash back on every purchase. This is a higher than average 1% cash back amount. And the amount you can earn is unlimited.

The cash back is automatic. You don't have to activate anything. And you don't want to keep track of dates and rotating categories.

Both Do Have Downsides

Beware of these potential downsides for both cards.

Foreign transaction fee: Unfortunately, both cards charge a 3% foreign transaction fee. So if you're planning on traveling abroad, make sure you also have a card without this fee.

Balance transfer fee: There is an intro 0% APR for balance transfers for 15 months, BUT there is a transfer fee of 5% (or minimum $5). This can add up to quite a bit. Transferring a balance of $3,000 will mean a transfer fee of $150.

If you want to pay off debt and have a large balance to transfer, consider Chase Slate instead. It has no transfer fee promotion for transfers made during the first 60 days as well as an intro 0% APR for 15 months (after that, a variable APR, currently 16.24% to 24.99%).

For Chase Freedom Unlimited: You just spend an average of $1,000 a month.

You would earn: ($1,000 x 1.5%) x 12 months = $180 a year.

In this scenario, you'd get the same cash back amount with both cards. To come out ahead with the Chase Freedom, over 12.5% of your spending needs to be in 5% bonus categories every quarter (whereas you get a consistent 1.5% rewards rate with the Chase Freedom Unlimited).

If you usually spend $1,000 a month, over $125 of that needs to be in the bonus categories. Do you think you can do that?

Should You Get Both?

Having both cards in your wallet is a good strategy too. You can maximize your cash back potential this way. You can use your Chase Freedom for the 5% bonus categories and the Freedom Unlimited for all other purchases. Not to mention you'll get 2 sets of sign-up bonuses as well.

Chase allows you to pool your points between Chase Ultimate Rewards cards, so you can combine them to get a bigger cash reward. And if you have (or plan to get) one of the premier cards (like Chase Sapphire Preferred), you can even combine points for travel rewards.

But watch out for the Chase 5/24 rule. If you've opened more than 5 cards in the past 24 months (with any bank, not just Chase), you most likely won't be approved. So if you want both cards, make sure you haven't hit this limit.

How it Compares

For 5% Bonus Categories:Discover It is another card that offers up to 5% cash back in rotating categories. If you travel abroad, you may want to consider it because it has no foreign transaction fees. But keep in mind that Discover isn't as widely accepted as VISA.

Benefits and Features

Introductory Bonus Cash Back: Discover will match all the cash back you've earned at the end of your first year (only for new cardmembers).

Cash Back

Cash Back Rewards: Unlimited 1% cash back on all other purchases.

Cash Back Rewards: 1% cash back on all other purchases.

Bonus Cash Back

Bonus Cash Back: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter. Unlimited 1% cash back on all other purchases.Bonus Categories for 2018:
January - March 2018: Gas stations, internet/cable/phone services and Chase Pay, Apple Pay, Android Pay, Samsung Pay
April - June 2018: PayPal, Chase Pay and Grocery stores

Bonus Cash Back: 5% cash back on up to $1,500 in purchases in rotating categories that change each quarter (requires free and easy sign-up for 5% Cashback Bonus)*
Limitations apply*. See issuer's website for additional program details.Bonus Categories for 2017:
October - December 2017: 5% on up to $1,500 in purchases at Amazon.com & TargetBonus Categories for 2018:
January - March 2018: 5% on up to $1,500 in purchases at Gas Stations & Wholesale Clubs
April - June 2018: 5% on up to $1,500 in purchases at Grocery Stores
July - September 2018: 5% on up to $1,500 in purchases at Restaurants
October - December 2018: 5% on up to $1,500 in purchases at Amazon.com & Wholesale Clubs

Chase Freedom: Pricing information including interest rates, benefits and fees was obtained on January 12, 2018 from published websites and is believed to be accurate, but not guaranteed.

Discover It: Pricing information including interest rates, rewards, benefits and fees was obtained on February 1, 2018 from published websites and is believed to be accurate, but not guaranteed.

Disclaimer: The information for the Chase Freedom and Discover it® - Cashback Match™ has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.

For Flat Rate Cash Back:If you pay your bills on time and always pay the full amount, you could get more cash back with Citi Double Cash. However, it doesn't have a sign-up bonus and there is no intro APR for purchases. And you cannot pool your points with other cards, whereas the Chase Freedom cards let you combine points with other Chase Ultimate Rewards cards.

Bottom Line

It is hard to beat the 5% cash back that Chase Freedom offers, but only if you can spend enough in the rotating categories. Otherwise, the flat 1.5% cash back offered by Chase Freedom Unlimited is more versatile.

At Chase's Secure Site

Chase Freedom Unlimited® lets you earn a $150 bonus after you spend $500 on purchases in your first 3 months from account opening. You earn unlimited 1.5% cash back on every purchase. There is also a 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.24-24.99%. The balance transfer fee is 5% of the amount transferred, $5 minimum. The cash back rewards will not expire as long as your card account remains open. There is no annual fee.

Intro APR for Purchases

Intro APR for Balance Transfer

Regular APR

Annual Fee

0% for 15 months

0% for 15 months

16.24% - 24.99% Variable

$0

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.

Disclaimer: The information for the Chase Freedom, Discover it® - Cashback Match™, Citi® Double Cash Card, and Chase Slate has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.

Most credit cards tack on a 3% charge, or foreign transaction fee, on purchases made outside the United States. If you travel internationally with a no foreign transaction fee credit card, you'll save money on your purchases.

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Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.